Grim Employment Prospects Loom Over Thailand

[webfact]

File photo courtesy of SCG Thailand for reference only

The Thai economy is navigating turbulent waters as the nation's employment landscape reveals ominous signs of distress. Recent coverage from the Federation of Thai SMEs highlights a concerning drop in insured workers under Section 33 of the Social Security Act, affecting over 10 million people and signalling troubling times for job seekers.

 

The woes don't stop there. Sangchai Theerakulvanich, president of the federation, points to a surge in business closures and stagnation, reflected in negative financial statements submitted to the Revenue Department. This, he argues, showcases companies' battles to remain afloat amid escalating production costs and global economic strains.

 

“Small businesses in Thailand faced hardships even before the pandemic,” explains Mr Sangchai. “The pandemic amplified these struggles and, just as recovery was within sight by 2022, the Russia-Ukraine conflict and competition from foreign labour, particularly from Chinese firms employing non-Thai workers, compounded the challenges.”

 

One proposed solution lies in overhauling the education system to better align with future industries thriving on AI, digital advancements, and multilingual skills. Mr Sangchai emphasises the need for skill diversification, suggesting languages beyond English should be embraced.

 

The competition is real—in neighbouring countries like China, a massive push for innovation-driven entrepreneurship is underway, while Indonesia’s upskilling initiatives have seen millions reskilled in a bid to bolster national competitiveness.

 

Contrary to many debates that centre on increasing the minimum wage, Mr Sangchai underscores a more pressing matter: workforce quality and productivity. "Raising the minimum wage to 400 baht too soon could lead to job losses. The manufacturing sector may not cope with such costs," he cautions, highlighting the impending threat of automation and AI.

 

Recent insights from the National Economic and Social Development Council (NESDC) support this concern, identifying skills development as crucial for Thailand’s workforce in evolving industries like renewable energy and high-tech manufacturing.

 

However, despite new industries promising over 170,000 jobs, a significant dependency on foreign skilled workers poses a hurdle. This reliance is reflected in the 2023 IMD Digital Competitiveness Ranking, where Thailand's digital readiness lags behind, prompting calls for a focus on STEM education.

 

Amidst these complexities, external factors add to the uncertainty. Trade protectionism, particularly from the US, poses potential risks to exports and, by extension, employment. Furthermore, Thailand's standing in human trafficking reports raises questions about its global trade reputation.

 

Unemployment figures for 2024 have risen slightly to 1%, affecting over 402,000 individuals, despite a notable increase in non-agricultural sector jobs. As Thailand charts its path forward, balancing tourism allure, industrial advancement, and workforce development will be pivotal in overcoming these economic hurdles, reported Bangkok Post.

 

-- 2025-03-17

 

 

[ikke1959]

If you look around there is not so much poverty as they claim.. Everybody has work, drives in n ice cars, with many holidays, and crackdown on foreign workers, which are already very difficult to find as work permits and the labour protection prevents people to come and work. and be fair.. there are teachers or classroom assistents who have to work for 8000 THB a month.. No wonder they hardly can get anybody. Last month there was a job available for a foreign teacher, who had to be fully classified and work in a school for 5000 THB a month.. Foreigners will line up for jobs like this. Anyway.. the companies don't want to pay more because of the profit, but with less income and rising prices people can't buy much and the companies are compensating it with higher prices as their profit is most important and people buy less and and so everything is going down and down... The greed will destroy  

[JoePai]

If you look around there is not so much poverty as they claim

 

Maybe a trip to the opticians is in order ?

[watchcat]

8 minutes ago, ikke1959 said:

drives in n ice carsEverybody has work, ,

 

Almost all cars are on credit.

[HaoleBoy]

With the Thai Gov going full ahead with casinos, I sent a msg to a Thai lady this morning suggesting she look into schools (offering certification) for "dealing cards".  I know in Las Vegas this can be a good job to tied one over during a downturn or while waiting on a better job.

 

I searched google and it showed a few classes (on FB and other sites).  No casinos open yet but possibly something a lowly paid Thai can work towards.

[StayinThailand2much]

"Grim Employment Prospects Loom Over Thailand"

 

So, will the (official) unemployment rate climb above 2 percent? 😜 

[lordgrinz]

I hope that some of us not sending remittance (or less than usual) to Thailand for use in the local economy has contributed to this dilemma, then may the TRD will wake up....who am I kidding....TIT  

[ikke1959]

2 hours ago, watchcat said:

 

Almost all cars are on credit.

and that need to be paid for too

[ikke1959]

2 hours ago, JoePai said:

If you look around there is not so much poverty as they claim

 

Maybe a trip to the opticians is in order ?

No need.. I live in the rural area and I see poverty.. and the worst even is that today we heard that employees in Tops here are being paid by day 350 THB.. holiday or day off no payment... In almost all countries they use monthly payment.. Why not in Thailand. pay everybody at least 13k a month working not more than 9 hours a day and with at least 1 day off not included the official holidays...Than still don't earn much but it would do the economy much better than keeping them on 350 THB a day .... Holidays are paid and see what will happen... 70% of the holidays will be cancelled.. also much better for the economy

[watchcat]

2 minutes ago, ikke1959 said:

and that need to be paid for too

 

Yes and how thai people manage this (mostly they dont and the car gets repossessed)